Markets remain risk-positive at the beginning of the week and the greenback is having a tough time finding demand. Economists at ING expect the US dollar to consolidate around current levels this week.

Consolidation time?

“We see no reason for markets to doubt their 75 bps conviction call for July, and that should continue to put a floor under the dollar in the near term.”

“Expect the large majority of dollar moves this week to be linked to swings in global risk sentiment driven by non-US developments.”

“We could see some consolidation around current levels in the dollar this week, with DXY oscillating around the 107.00-109.00 region although the balance of risks remains tilted to the upside given the numerous threats to the global outlook.”